Yesterday was a bad day on the US markets and the price of PMs dropped as well. So far, today is not looking much better, but the Market has not opened yet as I am writing this. A Facebook friend asked, why the drop in PM prices? and was it a seasonal effect? I replied that I thought it was primarily due to the problems in Greece and the other PIIGS, which led to slide in the Euro and therefore, a relative increase in the strength of the dollar. As most of us know when the dollar is strong PM prices go down. Well, It may come to a suprise to most of you, but I do not know everything. I may have been partly wrong. According to an article on Forbes.com, Carl Gutierrez reported “the demand for gold has eased of late, but the cause may owe more to the calendar than the appetites of investors.”
Haytham Hodaly, senior precious metals analyst at Salman Partners, states that gold price is only returning to where gold typically rests this time of year, and assuming nothing else flares up, it should trade sideways to slightly lower, within a 5% range, until late-July. Demand is supposed to pick up again at that time from Asia, and as European countries seek to move out of the dollar and into hard assets. This seasonal relationship that has taken place 80% to 90% of the time over the last 20 years.
This seasonal phenomenon along with other factors such as a stronger dollar due to economic turmoil in Europe may be the cause of yesterdays drop in gold prices. I still believe that you should use the dip to stock up on PM's. To read the Forbes.com article go here: http://www.forbes.com/2010/05/04/gold-metals-barrick-markets-equities-commodities-mining.html?feed=rss_markets
Wednesday, May 5, 2010
Monday, May 3, 2010
NIA: Introduction and Mining Stock Recommendation
The National Inflation Association (NIA) is an organization dedicated to preparing Americans for hyperinflation and helping Americans to survive and prosper in the upcoming hyperinflationary crisis. The U.S. government’s obligations include a $12.8 trillion national debt, $6.3 trillion in Fannie/Freddie debt and $60 trillion in unfunded obligations for programs such as Social Security, Medicare and Medicaid. The NIA believes that the United States for all intents and purposes is bankrupt and Americans need to take steps immediately to protect themselves from the potential loss of the purchasing power of their U.S. dollars.
NIA believes the largest financial crisis in history is ahead of us as a direct result of the U.S. government unwilling to accept a much needed recession. We are now at a point where our national debt is impossible to pay off. Due to rising interest payments on our national debt, it is unlikely the U.S. will be able to balance its budget ever again. Foreign countries will eventually stop lending the U.S. money and the Federal Reserve will most likely have to print the money to fund our deficit spending out of thin air.
The NIA’s ultimate goal is to help as many Americans as possible become aware of the disaster we are rapidly approaching. The NIA believes that the wealth of most Americans could get wiped out during the next decade, but it will be an opportunity for a small percentage of Americans to become wealthy by investing into companies that historically have prospered in an inflationary environment, such as gold and silver miners and agriculture producers.
Their website has extensive articles, news, reviews, stock suggestions, gold and silver seller reviews, and coin melt values. The articles are written by the staff of the NIA, and you can subscribe to the free NIA newsletter to have them emailed to you before they are posted online. You can check out their website at http://www.inflation.us/ and you can sign up for the newsletter on the same page. The NIA also has a Facebook group site that is open to the public.
Today, MIA announced a new stock suggestion, Coeur d’Alene Mines Corporation (CDE). Coeur d’Alene Mines Corporation is one of the world’s leading silver companies and is also a significant gold producer. In 2009, gold production increased 56% to 72,112 ounces. Coeur has a strong Latin American presence and will have its first full year of production in 2010 at its newest operation, the Palmarejo silver/gold mine in Mexico. The company also holds 100% operating interest and exploration rights at underground mines in southern Chile and Argentina and one surface mine in Nevada; and owns a non-operating interest in a low-cost mine in Australia. The Company is finalizing the construction at its Kensington gold project in Alaska, and conducts exploration activities in Argentina, Chile and Mexico. You can read the CDE profile at http://www.inflation.us/cde.html
As usual do not buy stock on my recommendation or anyone else’s. Always do your own DD.
NIA believes the largest financial crisis in history is ahead of us as a direct result of the U.S. government unwilling to accept a much needed recession. We are now at a point where our national debt is impossible to pay off. Due to rising interest payments on our national debt, it is unlikely the U.S. will be able to balance its budget ever again. Foreign countries will eventually stop lending the U.S. money and the Federal Reserve will most likely have to print the money to fund our deficit spending out of thin air.
The NIA’s ultimate goal is to help as many Americans as possible become aware of the disaster we are rapidly approaching. The NIA believes that the wealth of most Americans could get wiped out during the next decade, but it will be an opportunity for a small percentage of Americans to become wealthy by investing into companies that historically have prospered in an inflationary environment, such as gold and silver miners and agriculture producers.
Their website has extensive articles, news, reviews, stock suggestions, gold and silver seller reviews, and coin melt values. The articles are written by the staff of the NIA, and you can subscribe to the free NIA newsletter to have them emailed to you before they are posted online. You can check out their website at http://www.inflation.us/ and you can sign up for the newsletter on the same page. The NIA also has a Facebook group site that is open to the public.
Today, MIA announced a new stock suggestion, Coeur d’Alene Mines Corporation (CDE). Coeur d’Alene Mines Corporation is one of the world’s leading silver companies and is also a significant gold producer. In 2009, gold production increased 56% to 72,112 ounces. Coeur has a strong Latin American presence and will have its first full year of production in 2010 at its newest operation, the Palmarejo silver/gold mine in Mexico. The company also holds 100% operating interest and exploration rights at underground mines in southern Chile and Argentina and one surface mine in Nevada; and owns a non-operating interest in a low-cost mine in Australia. The Company is finalizing the construction at its Kensington gold project in Alaska, and conducts exploration activities in Argentina, Chile and Mexico. You can read the CDE profile at http://www.inflation.us/cde.html
As usual do not buy stock on my recommendation or anyone else’s. Always do your own DD.
Thursday, April 29, 2010
Gold Rallies Against Western Sovereign Paper
Many people attribute gold’s rally to the possible collapse of the Euro; however, Lance Lewis, of Lewis Capital, a Registered Investment Advisor in Dallas wrote an article for Minyanville.com expressing his hypothesis. He thinks that gold is rallying in all the major currencies at the moment, providing further evidence that gold’s bull market isn't due solely to a weak dollar.
Lewis believes the reason gold is rallying now is more complex than just Portugal, Greece, Italy, and Spain’s (PIGS) sovereign debt problems and the decline of the euro. The real problem is with all the Western sovereign paper currencies including the US. When a monetary system breaks down, that leaves gold and other PMS as the only monetary refuge. The fact that gold prices continues to increase even as the dollar rallies against the euro and other debtor currencies tells us that the market see issues with the dollar in the future as well.
Lewis states that “even if there is a default in Europe and the ECB is eventually forced to flood the PIGS with euros (a lesson it learned from the Fed here in the US) that's when the market’s focus will then turn to the sovereign debt issues of the US and begin to sell the dollar and US debt.”
Gold investors need to look to the future and think ahead, if you look at countries with sovereign debt problems as dominoes, at the end of the line of dominoes is the biggest debtor of them all, the US. Once the market’s focus comes off the sovereign debt problems of the PIGS for a while, the sovereign debt vigilantes will simply then turn their guns on the US, and the market knows this. The gold market is finally thinking ahead (for once), and not waiting for the dominoes to fall.
To read Lewis’ article go here.
Lewis believes the reason gold is rallying now is more complex than just Portugal, Greece, Italy, and Spain’s (PIGS) sovereign debt problems and the decline of the euro. The real problem is with all the Western sovereign paper currencies including the US. When a monetary system breaks down, that leaves gold and other PMS as the only monetary refuge. The fact that gold prices continues to increase even as the dollar rallies against the euro and other debtor currencies tells us that the market see issues with the dollar in the future as well.
Lewis states that “even if there is a default in Europe and the ECB is eventually forced to flood the PIGS with euros (a lesson it learned from the Fed here in the US) that's when the market’s focus will then turn to the sovereign debt issues of the US and begin to sell the dollar and US debt.”
Gold investors need to look to the future and think ahead, if you look at countries with sovereign debt problems as dominoes, at the end of the line of dominoes is the biggest debtor of them all, the US. Once the market’s focus comes off the sovereign debt problems of the PIGS for a while, the sovereign debt vigilantes will simply then turn their guns on the US, and the market knows this. The gold market is finally thinking ahead (for once), and not waiting for the dominoes to fall.
To read Lewis’ article go here.
Thursday, April 22, 2010
24K Chuk Kam mentioned in Gold Wars Article
After I posted an article on "Gold Wars", 24 Chuk Kam was acknowledged and
even praised as presenting "well-researched entries on topics of gold; inflation, gold mines, junior mining industries, ETF’s and other related news in the gold market." Gold Wars even mentions how our information is well researched and that we combine this with our hands-on investment experience. I think it is good to be acknowledged by others in the same field, it gets old fast if you are the only one tooting your horn. To read the entire article go here.
even praised as presenting "well-researched entries on topics of gold; inflation, gold mines, junior mining industries, ETF’s and other related news in the gold market." Gold Wars even mentions how our information is well researched and that we combine this with our hands-on investment experience. I think it is good to be acknowledged by others in the same field, it gets old fast if you are the only one tooting your horn. To read the entire article go here.
Thursday, April 1, 2010
Gold Mining Update-April 1, 2010
There are five gold mining companies making headlines today. Lihir Gold rejected a buyout offer and appointed a new CEO. I believe the two items are unrelated. Allied Nevada gave us an update on its reserves and resources while Apollo Gold and Linear Gold did enter into an agreement to merge. Yamana Gold’s Minera operation in Peru that was shut down for weeks after an earthquake is up and operational. Last but not least, Agnico-Eagle will acquire all the Comaplex Minerals Corp. stock it does not already own and get a gold producing property out of the deal.
Lihir Gold rejected an offer from Newcrest Mining to acquire 100% of Lihir's common shares. Newcrest made the offer on 29 March 2010. Terms of the offer were 1 Newcrest share for every 9 Lihir shares plus A$ 0.225 in cash for each Lihir Gold share. After careful review and analysis, the board of directors unanimously decided that the offer did not represent good value for Lihir Gold shareholders.
Coincidentally, Lihir Gold appointed a new CEO. The company appointed former BHP senior executive Graeme Hunt as Managing Director and Chief Executive Officer. Lihir Chairman Ross Garnaut stated that Mr. Hunt was the ideal candidate for the CEO role. He brings with him strong leadership skills, vast knowledge of the mining industry and extensive experience in strategic development.
Allied Nevada reported today an update on its mineral reserves and resources. Allied has more than doubled its oxide gold reserves to 2.4 million ounces at its Hycroft mine, which it fully owns near Winnemucca, Nevada. Measured and indicated gold equivalent ounces increased 28% to 10.3 million ounces compared with 8.1 million gold equivalent ounces reported in March 2009.
Apollo Gold and Linear Gold announced today that they have entered into a definitive arrangement agreement by way of a court approved plan of arrangement. The Arrangement Agreement supercedes a previous letter of intent executed by Apollo and Linear regarding the merger. Both companies anticipate that the merger will be completed in June 2010
Yamana Gold reaffirms that their gold production will gradually increase, and cash costs would sequentially decrease, throughout the year. The Minera Florida gold processing plant suffered severe damage from an earthquake that hit Chile on February 27, 2010. Although the mine site was unharmed, it was without a secure normal power supply for weeks. This caused Minera Florida to produce less than anticipated. Yamana stated that the Minera Florida operation is now fully operational.
Agnico-Eagle and Comaplex Minerals Corp. announced that Agnico-Eagle will acquire all of the shares of Comaplex that it does not already own. The terms of the agreement would give each shareholder of Comaplex 0.1576 of an Agnico-Eagle share per Comaplex share. Agnico-Eagle would also acquire Comaplex's Meliadine gold property. Comaplex owns a 100% interest in the advanced stage Meliadine gold project located in Nunavut, Canada, approximately 300 kilometers from Agnico-Eagle's producing Meadowbank gold mine. Meliadine currently has 3.29 million ounces of measured and indicated gold resources from 13M tons grading 7.9 grams per ton (g/t) and inferred gold resources of 1.73M ounces from 8.4M tons grading 6.4 g/t.
Lihir Gold rejected an offer from Newcrest Mining to acquire 100% of Lihir's common shares. Newcrest made the offer on 29 March 2010. Terms of the offer were 1 Newcrest share for every 9 Lihir shares plus A$ 0.225 in cash for each Lihir Gold share. After careful review and analysis, the board of directors unanimously decided that the offer did not represent good value for Lihir Gold shareholders.
Coincidentally, Lihir Gold appointed a new CEO. The company appointed former BHP senior executive Graeme Hunt as Managing Director and Chief Executive Officer. Lihir Chairman Ross Garnaut stated that Mr. Hunt was the ideal candidate for the CEO role. He brings with him strong leadership skills, vast knowledge of the mining industry and extensive experience in strategic development.
Allied Nevada reported today an update on its mineral reserves and resources. Allied has more than doubled its oxide gold reserves to 2.4 million ounces at its Hycroft mine, which it fully owns near Winnemucca, Nevada. Measured and indicated gold equivalent ounces increased 28% to 10.3 million ounces compared with 8.1 million gold equivalent ounces reported in March 2009.
Apollo Gold and Linear Gold announced today that they have entered into a definitive arrangement agreement by way of a court approved plan of arrangement. The Arrangement Agreement supercedes a previous letter of intent executed by Apollo and Linear regarding the merger. Both companies anticipate that the merger will be completed in June 2010
Yamana Gold reaffirms that their gold production will gradually increase, and cash costs would sequentially decrease, throughout the year. The Minera Florida gold processing plant suffered severe damage from an earthquake that hit Chile on February 27, 2010. Although the mine site was unharmed, it was without a secure normal power supply for weeks. This caused Minera Florida to produce less than anticipated. Yamana stated that the Minera Florida operation is now fully operational.
Agnico-Eagle and Comaplex Minerals Corp. announced that Agnico-Eagle will acquire all of the shares of Comaplex that it does not already own. The terms of the agreement would give each shareholder of Comaplex 0.1576 of an Agnico-Eagle share per Comaplex share. Agnico-Eagle would also acquire Comaplex's Meliadine gold property. Comaplex owns a 100% interest in the advanced stage Meliadine gold project located in Nunavut, Canada, approximately 300 kilometers from Agnico-Eagle's producing Meadowbank gold mine. Meliadine currently has 3.29 million ounces of measured and indicated gold resources from 13M tons grading 7.9 grams per ton (g/t) and inferred gold resources of 1.73M ounces from 8.4M tons grading 6.4 g/t.
Wednesday, March 24, 2010
Free Online Report on Gold
You can read a free online review copy of the brand new breakthrough financial report from Gold, Silver, and Energy expert Byron King entitled "The Curse of the Incas". It is a very interesting read full of historical information and predictions for gold and silver prices, although it is ultimately an invitation to subscribe to his services.
http://agorafinancial.com/reports/OST/Inca/OST_IncaGold.php?code=EOSTL355&o=81348&s=82914&u=49657430&l=98572&r=Milo
http://agorafinancial.com/reports/OST/Inca/OST_IncaGold.php?code=EOSTL355&o=81348&s=82914&u=49657430&l=98572&r=Milo
Tuesday, March 16, 2010
Gold Prices Soar on EU, US troubles
Gold prices soared today as investors sought out the metal's safe haven. Prices have traded as high as $1,130.20 and closed at $1,126.90 as the U.S. dollar index slipped 0.49%. Gold's spot price rose $18.10 according to Kitco's gold index.
Most investors bought gold as an alternative investment, seeking the safety of a hard asset over a pandemic of struggling currencies. Not only is the US dollar in trouble but the EU's multibillion-euro bailout for Greece is sketchy, and now Spain, US, UK, France and Germany are at risk for losing their triple-A credit rating from Moody's. Many analysts are anticipating further euro weakening and subsequent inflation.
Further currency debasement could help support higher gold prices, but global rate hikes might provide some short-term downside. After China's higher-than-expected inflation reading, analysts are expecting the government to raise interest rates to control economic expansion.
The Fed has pledged to keep interest rates low for an extended period of time despite fledgling economic recovery. But wary investors are ever vigilant, watching for any tell that the Fed will tighten rates sooner than expected. Gold has historically been the go to hedge against inflation bought by investors. Thus, any signs that the government will end the flow of free money will impact gold and other precious metal prices.
Most investors bought gold as an alternative investment, seeking the safety of a hard asset over a pandemic of struggling currencies. Not only is the US dollar in trouble but the EU's multibillion-euro bailout for Greece is sketchy, and now Spain, US, UK, France and Germany are at risk for losing their triple-A credit rating from Moody's. Many analysts are anticipating further euro weakening and subsequent inflation.
Further currency debasement could help support higher gold prices, but global rate hikes might provide some short-term downside. After China's higher-than-expected inflation reading, analysts are expecting the government to raise interest rates to control economic expansion.
The Fed has pledged to keep interest rates low for an extended period of time despite fledgling economic recovery. But wary investors are ever vigilant, watching for any tell that the Fed will tighten rates sooner than expected. Gold has historically been the go to hedge against inflation bought by investors. Thus, any signs that the government will end the flow of free money will impact gold and other precious metal prices.
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